Beyond the Rhetoric

It’s a common piece of real estate advice that you are much better off buying the worst house in the best neighborhood than you are buying the best house in the worst neighborhood. While real estate continues to be one of my favorite hobbies, this word to the wise actually applies well beyond the world of buying and selling homes.

Invest in the Future

Buying the worst house in the best neighborhood makes the best sense from an investment standpoint, because there is a good chance that the land underneath that house will continue to appreciate (rather than depreciate). The neighborhood is desirable and people will want to live there. Through renovations and other changes, you have a lot of upward potential and your once cheap home can be worth a pretty penny with a little elbow grease on your part.

Considering life in general, the same can be said about the kind of work you do and the people with which you associate. If you surround yourself by people who are less affluent or well-mannered than you (the worst neighborhood), they could easily drag you down to their level, so to speak. Surround yourself by people who are more successful and you’ll have the opportunity to move up to their level.

Get a New Coat of Paint

You may be the worst house in the best neighborhood, but you have the potential to appreciate your perceived value. It’s probably not a good idea to want to be someone else, but you can step up your game and improve yourself as a result.

As with the older home in the newer neighborhood, you’ll need to make the effort to raise your perceived value. You’ll need to put in the work, but you have much greater potential for success than if you were already “better off” than those around you. The motivation just isn’t there.

Take a Look Around You

It’s just like when you are playing poker or participating in some kind of competitive sport. If you’re the best player on the court, chances are that you’re not going to get any better. Surround yourself with better players and you’ll be motivated to “up your game.” You want to be competitive. Compare yourself to others and find the motivation to improve. You can learn a lot along the way too.

The advice may have its roots in real estate, but choosing the worst house in the best neighborhood could be the best decision you make in many of life’s journeys.

Tags: happiness, personal success, real estate

Filed under Personal Development.